Ge Healthcare Technologies Inc. · NASDAQ:GEHC
Ge Healthcare Technologies — Q4 2024 Earnings Presentation
34 slides from Ge Healthcare Technologies's earnings presentation, Feb 13, 2025
Slide 1: 4Q and Full Year 2024 Earnings Presentation
4Q and Full Year 2024 Earnings Presentation February 13, 2025 © 2025 GE HealthCare. GE is a trademark of General Electric Company used under trademark license.
Slide 2: Forward-looking statements and additional information
Forward-looking statements and additional information This presentation contains forward-looking statements. These forward-looking statements might be identified by words, and variations of words, such as “will,” “expect,” “may,” “would,” “could,” “plan,” “believe,” “anticipate,” “intend,” “estimate
Slide 3: 4Q 2024 Performance
4Q 2024 Performance • Strong orders, backlog and book-to-bill • Revenue growth driven by demand in Advanced Visualization Solutions and Pharmaceutical Diagnostics businesses, with overall strength in the U.S. • Robust margin expansion and EPS growth while continuing to invest in R&D • Closed more th
Slide 4: 4Q 2024 Consolidated performance summary
4Q 2024 Consolidated performance summary Revenues Organic orders Adjusted EBIT* and Adjusted EPS* Free cash flow* growth**(1) Adjusted EBIT margin* $5.3B 6% YoY $994M $1.45 $811M 2% Organic growth*(1) Book-to-Bill** 18.7% Margin +23% YoY $(145)M YoY 1.09x +260 bps YoY *Non-GAAP financial measure. Se
Slide 5: 2024 Consolidated performance summary
2024 Consolidated performance summary Revenues Organic orders Adjusted EBIT* and Adjusted EPS* Free cash flow* growth**(1) Adjusted EBIT margin* $19.7B 3% YoY $3.2B $4.49 $1.6B 1% Organic growth*(1) Book-to-Bill** 16.3% Margin +14% YoY $(161)M YoY 1.05x +120 bps YoY *Non-GAAP financial measure. See
Slide 6: Delivered strong 2024 Adjusted margin expansion
Delivered strong 2024 Adjusted margin* expansion 4Q 2024 Adjusted margin* expansion FY 2024 Adjusted margin* expansion +150 bps YoY +260 bps YoY +140 bps YoY +120 bps YoY Robust margin expansion driven by lean culture while continuing to invest in R&D and create value for patients * Non-GAAP financi
Slide 7: 4Q 2024 Imaging results
4Q 2024 Imaging results 4Q 2023 4Q 2024 YoY change Revenues $2,392M $2,393M —%*(1) Segment EBIT $255M $302M 19% Segment EBIT margin 10.7% 12.6% 200 bps Note: Results recast in line with move of Image Guided Therapies from Imaging to Advanced Visualization Solutions Highlights • Organic revenue growt
Slide 8: 4Q 2024 Advanced Visualization Solutions results
4Q 2024 Advanced Visualization Solutions results 4Q 2023 4Q 2024 YoY change Revenues $1,382M $1,440M 4%*(1) Segment EBIT $326M $374M 15% Segment EBIT margin 23.6% 25.9% 240 bps Note: Results recast in line with move of Image Guided Therapies from Imaging to Advanced Visualization Solutions Highlight
Slide 9: 4Q 2024 Patient Care Solutions results
4Q 2024 Patient Care Solutions results 4Q 2023 4Q 2024 YoY change Revenues $827M $827M —%*(1) Segment EBIT $110M $106M (4)% Segment EBIT margin 13.3% 12.8% (50) bps Highlights • Organic revenue* flat YoY with Services growth and improved fulfillment offset by tough comparison in Monitoring Solutions
Slide 10: 4Q 2024 Pharmaceutical Diagnostics results
4Q 2024 Pharmaceutical Diagnostics results 4Q 2023 4Q 2024 YoY change Revenues $591M $646M 9%*(1) Segment EBIT $144M $212M 47% Segment EBIT margin 24.4% 32.9% 850 bps . Highlights • Strong Organic revenue growth* driven by volume and price • EBIT margin increased due to price, volume and one-time it
Slide 11: 4Q 2024 Cash performance
4Q 2024 Cash performance 4Q 2024 Free cash flow* Full Year 2024 Cash highlights $956M $811M • Delivered $1.6B in Free cash flow* and 75% FCF conversion* • Repaid $400M of debt in 2024; additional $250M in 1Q 2025 • Ongoing focus on working capital management; YoY Free cash flow* declined due to inve
Slide 12: 2025 Outlook
2025 Outlook 2024A 2025E Organic Revenue Growth*(1) 1% 2% - 3% FX headwind on revenue estimated to be 1.5% Adjusted EBIT Margin* 16.3% 16.7% - 16.8% 40 - 50 bps growth Adjusted ETR* 21.8% 22% - 23% Adjusted EPS* $4.49 $4.61 - $4.75 3% - 6% growth Free Cash Flow* $1.6 billion At least $1.75 billion 2
Slide 13: 2024 Growth driven by innovations launched over the last three years
2024 Growth driven by innovations launched over the last three years Healthy NPI vitality(1) of ~50% supported by increased R&D Imaging AVS PCS PDx CARESCAPE Canvas™ SIGNA™ MR Revolution™ Apex CT LOGIQ™ E10 Series Voluson™ E10 Omni Legend PET/CT w/ Precision DL Allia™ IGS Pulse OEC 3D MAC™ 7 ECG Ais
Slide 14: Commercial execution: transactional → transformative
Commercial execution: transactional → transformative Sutter Health (California) Nuffield Health (UK) Undergoing significant expansion efforts to increase Investing in technologies and solutions to enable precision capacity and access to care diagnostics to help meet growing patient demand • $1B+ ove
Slide 15: Summary
Summary • Continued to deliver revenue growth, robust margin expansion, strength in earnings and solid Free cash flow* in 4Q’24 • Executing on our precision care strategy through enterprise partnerships • Entering 2025 with strong momentum in orders, backlog and book-to-bill • Good progress toward t
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Slide 17: Q&A
Q&A © 2025 GE HealthCare. GE is a trademark of General Electric Company used under trademark license.
Slide 18: Upcoming events
Upcoming events Citi MedTech and Life Sciences Access Day February 27, 2025 © 2025 GE HealthCare. GE is a trademark of General Electric Company used under trademark license.
Slide 19: Appendix
Appendix © 2025 GE HealthCare. GE is a trademark of General Electric Company used under trademark license.
Slide 20: Organic Revenue
Organic Revenue* ($ in millions) For the three months ended December 31 For the years ended December 31 Unaudited 2024 2023 % change 2024 2023 % change Total revenues $ 5,319 $ 5,206 2% $ 19,672 $ 19,552 1% Less: Acquisitions(1) 17 — 47 — Less: Dispositions(2) — — — — Less: Foreign currency exchange
Slide 21: Segment Organic Revenue
Segment Organic Revenue* ($ in millions) For the three months ended December 31 For the years ended December 31 Unaudited 2024 2023 % change 2024 2023 % change Imaging revenues $ 2,393 $ 2,392 —% $ 8,855 $ 8,944 (1)% Less: Acquisitions(1) 17 — 47 — Less: Dispositions(2) — — — — Less: Foreign currenc
Slide 22: Adjusted EBIT
Adjusted EBIT* ($ in millions) For the three months ended December 31 For the years ended December 31 Unaudited 2024 2023 % change 2024 2023 % change Net income attributable to GE HealthCare $ 720 $ 403 79 % $ 1,993 $ 1,568 27 % Add: Interest and other financial charges – net 121 131 504 542 Add: No
Slide 23: Adjusted Net Income
Adjusted Net Income* ($ in millions) For the three months ended December 31 For the years ended December 31 Unaudited 2024 2023 % change 2024 2023 % change Net income attributable to GE HealthCare $ 720 $ 403 79 % $ 1,993 $ 1,568 27 % Add: Non-operating benefit (income) costs (100) (50) (406) (382)
Slide 24: Adjusted Earnings Per Share
Adjusted Earnings Per Share* (In dollars, except shares outstanding presented in millions) For the three months ended December 31 For the years ended December 31 Unaudited 2024 2023 $ change 2024 2023 $ change Diluted earnings per share – continuing operations $ 1.57 $ 0.88 $ 0.69 $ 4.34 $ 3.04 $ 1.
Slide 25: Adjusted Tax Expense and Adjusted ETR
Adjusted Tax Expense* and Adjusted ETR* ($ in millions) For the three months ended December 31 For the years ended December 31 Unaudited 2024 2023 2024 2023 Benefit (provision) for income taxes $ (96) $ (193) $ (531) $ (743) Add: Tax effect of reconciling items(1) (16) (21) (42) (24) Add: Spin-Off a
Slide 26: Free Cash Flow
Free Cash Flow* ($ in millions) For the three months ended December 31 For the years ended December 31 Unaudited 2024 2023 % change 2024 2023 % change Cash from (used for) operating activities – continuing operations $ 913 $ 1,050 (13)% $ 1,955 $ 2,101 (7)% Cash flow conversion 98 % 134 % (36) pts A
Slide 27: Non-GAAP P&L Reconciliations - 4Q 2024
Non-GAAP P&L Reconciliations - 4Q 2024 ($ in millions) Acquisition Amortization Non- and (Gain) loss on of Investment operating Spin-Off and Tax effect of Spin-Off and Non-GAAP GAAP Restructuring disposition- business and acquisition- revaluation benefit separation reconciling other tax Reported cos
Slide 28: Non-GAAP P&L Reconciliations - 4Q 2023
Non-GAAP P&L Reconciliations - 4Q 2023 ($ in millions) Acquisition Amortization Non- and (Gain) loss on of Investment operating Spin-Off and Tax effect of Spin-Off and Non-GAAP GAAP Restructuring disposition- separation business and acquisition- revaluation benefit reconciling other tax Reported cos
Slide 29: Non-GAAP P&L Reconciliations - FY 2024
Non-GAAP P&L Reconciliations - FY 2024 ($ in millions) Acquisition Amortization Non- and (Gain) loss on of Investment operating Spin-Off and Tax effect of Spin-Off and Non-GAAP GAAP Restructuring disposition- business and acquisition- revaluation benefit separation reconciling other tax Reported cos
Slide 30: Non-GAAP P&L Reconciliations - FY 2023
Non-GAAP P&L Reconciliations - FY 2023 ($ in millions) Acquisition Amortization Non- and Income (loss) and (Gain) loss on of Investment operating Spin-Off and Tax effect of Spin-Off from GAAP Restructuring disposition- business and acquisition- revaluation benefit other tax discontinued Non-GAAP sep
Slide 31: Acronyms
Acronyms AI Artificial Intelligence AVS Advanced Visualization Solutions bps Basis points CS Carestation CT Computed Tomography DL Deep Learning EBIT Earnings Before Interest and Taxes ECG Electrocardiogram EPS Earnings Per Share ETR Effective Tax Rate FCF Free Cash Flow FDA Food and Drug Administra
Slide 32: Definitions
Definitions The estimated revenue expected from customer contracts that are partially or fully unperformed including amounts deferred Backlog in contract liabilities, contracts, or portions thereof, that provide the customer with the right to cancel or terminate without incurring a substantive penal
Slide 33: Non-GAAP Financial Measures
Non-GAAP Financial Measures The non-GAAP financial measures presented in this presentation are supplemental measures of GE HealthCare’s performance and its liquidity that the Company believes will help investors understand its financial condition, cash flows, and operating results, and assess its fu
Slide 34: Non-GAAP Financial Measures in Outlook
Non-GAAP Financial Measures in Outlook GE HealthCare calculates forward-looking non-GAAP financial measures, including Organic revenue growth, Adjusted EBIT margin, Adjusted ETR, Adjusted EPS, and Free cash flow based on internal forecasts that omit certain amounts that would be included in GAAP fin
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